UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev | Next
Author: nmckay Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: Re: Emergency fund Date: 7/19/2004 11:40 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Given that I did this a while ago, I'm not sure if it's still a good deal, but I put our e-fund into I-bonds. At the time the rates were better than a CD. They adjust for inflation, aren't taxed until you sell them (unlike EEs), and don't need to be messed with for thirty years.

There are some rules you have to adhear to such as not cashing it for six months and that if you redeem them before five years you pay a three months of interest as a penalty. Also you used to be able to do all this on line with a credit card, but I think they ended that as people were gaming the system. You also have some maximums/year to contend with.

Once the whole thing is set up, you can take your bonds down to any bank and cash them at any time the bank's open for business. That's pretty convenient.

Check www.treasurydirect.gov to make sure my facts are correct. The current rate may not be worth it, but it's another option. If it is a good deal, you could put one third there now and two thirds in ING and move another third every six months until it was all in. It should be easier than dealing with CD ladders.

nmckay
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement